On December 21, 20X6, Shaw Company accepted from Bogner a $10,000, 90-day, 8% note in lieu...

On December 21, 20X6, Shaw Company accepted from Bogner a $10,000, 90-day, 8% note in lieu of an existing $10,000 account receivable. Shaw Company's fiscal year-end is December 31. What journal entry, if any, should Shaw Company record on December 31, 20X6?

Expert Solution

	Shaw Company
	On December 31,20X6
Date	Particular	Amount (Dr)	Amount (Cr)
December 31st	8% Note Receivable	$ 10,000.00
	To Accounts Receivable		$ 10,000.00
	(Being amount of 90 days 8% Note Received from Bogner)


	Explaination

	At the time of credit sales (Sales has already made)
	Jouranl Entry will be
	Accounts Receivable
	To Sales
	So when 8% Note received from Accounts Receivable entry will be passed
	8% Note Receivable
	To Accounts Receivable

ekkarill92 answered 2 years ago

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